RM 405 Exam 1 questions with correct
answers rated A+ passed
Strategic Risk Examples - correct answer ✔✔Brick & mortar retailers efforts to compete with online
shopping.
US manufacturers' efforts to reduce costs of operation.
Financial Risk Examples - correct answer ✔✔Transportation firms response to fluctuating fuel prices.
2008 banking crisis.
Operational Risk Examples - correct answer ✔✔Faulty components from outsourced suppliers in supply
chains (e.g. Takata airbags, Chipotle's issues with E coli).
Hacking data breaches - Facebook
Questionable business practices.
Hazard Risk Examples - correct answer ✔✔HR Issues
Property Risk
Liability Risk
Earthquakes, hurricanes, 9/11 attacks.
Common characteristics of ERM - correct answer ✔✔Top down management.
Broad scope of loss exposures.
Systematic process.
COSO - correct answer ✔✔Sponsored by big 5 accounting corporations.
Assess internal environment: What is the risk appetite of firm/board?
Set strategic goals regarding RM, based on risk appetite
answers rated A+ passed
Strategic Risk Examples - correct answer ✔✔Brick & mortar retailers efforts to compete with online
shopping.
US manufacturers' efforts to reduce costs of operation.
Financial Risk Examples - correct answer ✔✔Transportation firms response to fluctuating fuel prices.
2008 banking crisis.
Operational Risk Examples - correct answer ✔✔Faulty components from outsourced suppliers in supply
chains (e.g. Takata airbags, Chipotle's issues with E coli).
Hacking data breaches - Facebook
Questionable business practices.
Hazard Risk Examples - correct answer ✔✔HR Issues
Property Risk
Liability Risk
Earthquakes, hurricanes, 9/11 attacks.
Common characteristics of ERM - correct answer ✔✔Top down management.
Broad scope of loss exposures.
Systematic process.
COSO - correct answer ✔✔Sponsored by big 5 accounting corporations.
Assess internal environment: What is the risk appetite of firm/board?
Set strategic goals regarding RM, based on risk appetite
